Giving

For Advisors
Among the Rockland Community Foundation’s most valuable partners are the local attorneys, accountants and financial advisors who have helped their clients realize their charitable dreams and invest in Rockland in a way that's meaningful to them.

Although several clients may already give to charitable organizations, professional advisors can work with the Rockland Community Foundation to provide donors with the information they need to make smart giving decisions – choices that have the most positive impact on the community while also providing the greatest possible tax advantages.

Why should you talk to your clients about charitable giving?
Sometimes advisors are reluctant to raise charitable giving as a topic with clients. They may be concerned about appearing to make a value judgment, especially if a client has not expressed charitable intentions.

However, by not broaching the subject of charitable giving, a significant opportunity may be lost for your client and the community. In fact, many individuals expect their professional advisors to bring up the subject if appropriate... and assume charitable giving is not an option if the subject is NOT raised.

Philanthropy is a very personal decision. As a professional advisor, you can help clients realize their charitable objectives by listening for charitable giving opportunities, explaining options, and suggesting solutions. Significant giving opportunities often arise when clients are making major business, personal, and financial decisions. Our staff can work with you and your client to recommend the best charitable solution. Typical scenarios include:

Year-end tax planning
Preserving an estate
Retiring in comfort
Establishing a private foundation
Closely held stock
Sale or disposition of highly appreciated stock
Sale of a business
Strategic giving
Substantial IRA/401(k) assets

Broaching the Philanthropy Bar

Financial advisors can play a pivotal role in helping high-net-worth clients employ charitable giving strategies to strengthen their communities and improve their overall financial lives. After all, advisors are uniquely positioned to understand their clients’ entire wealth management picture.

Unfortunately, though, many advisors fail to broach the topic of philanthropy with clients—and those who do often focus predominately, if not exclusively, on the tax breaks that come with charitable gifts. These advisors are missing an opportunity.
“The affluent are looking to their trusted advisors for help,” says Scott Keffer, president of the National Association of Family Wealth Counselors and co-author of Giving: Philanthropy for Everyone. “They want advice that goes beyond tax strategies and covers personal issues like their values and charitable goals.”

Barriers Are More Perceived Than Real
Advisors often say they’re uncomfortable bringing up charitable giving because they worry the topic is too personal, or that they’ll appear unprofessional by questioning a client’s charitable causes and interests. Others fear that clients will assume their advisor is pushing them toward a specific charity. That’s why advisors who do tackle the topic usually steer the discussion to donors’ secondary concerns: The technical aspects of tax avoidance, and specific vehicles such as charitable trusts and annuities.

“That’s putting the cart before the horse,” says advisor Kathleen Rehl of Rehl Financial Advisors in Lutz, Florida. “Tax concerns are important, of course, but they’re usually not the driving force behind a successful charitable giving plan.”

Most advisors involved in charitable planning say the barriers to philanthropic discussions are more perceived than real.

“I’ve never had a client bristle when I ask about what drives their charitable interests. They usually thank me because no one’s ever raised these issues with them before, and they really open up about what they want their money to achieve,” says Patricia Raskob, an advisor in Tucson, Arizona who founded the Catholic Foundation for the Diocese of Tucson. “That enables me to be a better advisor to them and build more trust.”

Many advisors also feel a deep personal satisfaction from their charitable discussions. “It’s extremely rewarding to participate in the process of helping people use their wealth for the benefit of the greater good,” says Erik Falconer, president of Falconer Asset Management in Howell, Michigan.

Strategies to Start Talking Philanthropy

If you are concerned about broaching philanthropy with your clients, consider these success strategies from advisors and experts in the field:

Know the local landscape. You don’t need to be an expert in all things philanthropic to begin discussing the topic with clients. But you’ll be better able to answer their questions—or know where to go for advice—if you know the key contacts and organizations in your community.

Bring up philanthropy right away. During your initial meetings with new clients and prospects, include a discussion of their charitable intent and particular civic interests or concerns. “If you make philanthropy part of your discovery process, you emphasize that giving is one more element in the client’s larger financial picture and should be considered along with all their other objectives,” says Falconer. “It’s an effective way to ease into the subject.”

Think broadly. Open-ended questions will draw out clients’ charitable intent and show that you’re approaching philanthropy as part of a comprehensive financial program. Ask clients if they’re already helping local charities—many affluent individuals are pillars of the community who are involved in civic activities and volunteer work. Focus on their values by asking questions such as: What vision do you have for the various uses of your wealth? What principles do you want to stand for and pass on to your family? What are the values that drove you to make your money, and how will they drive how you spend or share it?

Share motivational stories. Do you have clients who are active philanthropists and could serve as role models to potential donors? Share their stories with interested clients and consider setting up meetings between the parties. Most philanthropists are eager to discuss their experiences.

Communicate non-verbally. If you’re uncomfortable approaching the subject during face-to-face meetings, give your clients a questionnaire about their philanthropic intentions and goals that they can fill out in private. Then follow up on their answers during a future discussion.

As with most financial issues, successfully integrating philanthropy into a client’s financial plan begins with good communication. Broaching the philanthropy barrier is well worth the effort, as long as you are armed with the right questions.

How do I know if giving through the Rockland Community Foundation is right for my clients?

If you answer yes to any of these questions, your clients will benefit from knowing more about the Rockland Community Foundation.

Seven questions for estate and financial advisors.

Do I have clients who care deeply about their local community?
Do they give to more than one charitable cause in the County?
Are they interested in creating a personal or family legacy in their community?
Are they considering the creation of a private foundation, but concerned about cost and administrative complexity?
Would they like to stay personally involved in the use of their gift dollars?
Do they want to receive maximum tax benefit for their charitable contributions under federal law?
Do they place a priority on sound financial management of their contributions?

How do I recommend charitable giving without recommending a particular charity?
Talk to your clients about giving through the Rockland Community Foundation.

It’s a delicate dilemma. Estate planners, financial planners, and other professional advisors are often faced with a delicate dilemma: You want to discuss the many benefits of charitable giving with your clients, but you want to avoid recommending specific charitable causes or organizations.

Fortunately, there’s a simple solution. It’s the Rockland Community Foundation. The Rockland Community Foundation is a single, trusted vehicle your clients can use to address the issues they care about most, while gaining maximum tax benefit under state and federal law. We offer a variety of giving options — including the ability to set up a charitable fund in your client’s name. It’s just one way we can help you help your clients achieve their charitable goals.

Prospective donors are advised to seek the advice of a competent tax professional before entering into any charitable planned gift. If we can help, contact us at 845.675.7814 or dfleming@rocklandgives.org.

The Rockland Community Foundation can help you help your clients achieve their charitable giving goals. We welcome the opportunity to work with you. We are available to meet in person with you and your clients to discuss in greater detail the Rockland Community Foundation and the mutual benefits to them and the community.

We work with advisors to enhance the services clients seek from you and your firm — always respecting and working within the relationships you have developed and maintain with your clients.

We are a trusted resource.